U.S. President Donald Trump announced on Wednesday the immediate increase of tariffs on Chinese goods to 125%, marking a new escalation in trade tensions between the two countries.

Trump wrote on the Truth Social platform that the decision comes in response to “China’s disrespect for global markets.”

Previously, Trump had imposed tariffs on China at a rate of 104%, which went into effect on Wednesday morning.

In retaliation, China raised its retaliatory tariffs on U.S. goods from 34% to 84%, effective April 10.